Learn to invest with Investerest edition
Every investment has meaning to life. And for those interested in investing the name “Investerest”, online media publishing interesting investment content on the website Facebook LINE Twitter Youtube IG as well as the podcast is well known. Only in the Investerest page, there are more than 700,000 fans following. Khun Best, Kittisak Kongka of Investerest an independent investor is the owner of good content. Let's talk about the aspirations, goals, methods, and things he has learned from investing.
Before becoming Investerest
Khun Best told about the beginning that came to be interested in investing. When Mr. Bass graduated, Mom bought a car for him, just like when his brother graduated. But at that time Khun Best didn't want a car. His mother gave a certain amount of money to go and buy the things he wanted. Which at first Khun Best left it alone Then bring the investment to grow by purchasing mutual funds, GSB lottery, and investing in stocks. And Khun Bass realizes that he likes investing the most in stocks. The turning point that made him interested in the stocks because of the fact that the GSB lottery that bought the prize was a 20% return. So, he wanted to invest in stocks in order to get more returns. Khun Best realized that investment was in control more predictable than based on luck or fortune. Together with the family used to sell lottery, he knows that it is difficult to live luck and win the prize. Therefore, wanting more money to grow on one's own abilities. This is the starting point for your interest in investing. And increasing the proportion of investment in stocks until it becomes 100%.
As for the question that many people wonder what kind of investment, we are suitable for? Khun Best recommends going to do a questionnaire on the stock exchange website. To measure how many percent of the risk we can take and what kind of investment should be. In practice, however, Khun Best sees that investing has no fixed formula. If we try to invest in everything, what type of investment will we be most happy with? Have peace of mind without worrying because you can take risks. Showing that we are suitable for such investments. For Khun Best investment, he has a family business part that is a pharmaceutical factory and personal business that is paging, and printing is the part that generates cash flow. Other than that, it will be investing in the stock market 100%. There are very few mutual funds. Only funds used for tax deductions and Indian stock mutual funds because, in India, individual stocks are not allowed.
Because investment is passion
Khun Best is comparable to working on stocks such as reading financial statements. It's like an investigation into figuring out what others can't see. For Khun Best, working with stocks is a passion in life. It's not a matter of wanting to make money. But also, fun Excited to understand each stock and own it. By doing something with a passion That will not require a lot of energy from our lives. It will make us not bored and not tried to do it. But to do it with fun, more curiosity, wanting to research, wanting to find. For example, Khun Best himself used to read about stocks for 8 hours a day. Even if it is a stock that cannot be bought, still want to study.
Things that make Khun Best excited when investing include: 1) Growth will be exciting when we see stocks with massive growth opportunities. For example, one of the stocks in the Philippine stock market that Khun Best has invested in has a market value of 20 billion baht. If in Thailand, this stock is likely to have a market value of more than 2-3 billion baht. Khun Best believes that in the future, the Philippine market will grow over Thailand, and that stock has a chance of 10 times more growth. 2) Value / cheap stocks During COVID-19 Where the stock price dropped It was a time when Khun Best enjoyed and was very excited about investing. Khun Best compared the COVID-19 investment, it's like Warren Buffett's words about investing in 1987 that Buffett was as excited as a young man in a harem. Khun Best also felt that way. That is, seeing cheap stocks and will be very excited. During which COVID-19 It is a time to generate relatively good returns.
Good corporate stocks to invest in, what is the viewing technique?
Regarding stock-picking techniques Bass argues that looking at stocks, do not judge based on the ideas people believe in. For example, retail stocks must be good. Hospital stocks must be good, or contractors are bad, etc. It's like saying, don't judge a book on its cover. From the experience of studying more than 2 thousand stocks both in Thailand and abroad. Khun Best won't put any branding labels first. But will study and understand the business, analyze the financial statements and, look at the prices first. Because when studying a lot Will know that you should pay attention to the future more than the past. Because the future can always change. A lot of times he found a stock that seemed good, but not so good and stocks that look bad but are good. Therefore, do not decide to put a branding label first without studying it thoroughly. But requires information to make decisions by considering weighing from 3 factors which are:
1.Quality: Sustainable competitiveness, profitable as the market leader? See financial statements, company structure. The foundation of the company's strength
2.Growth: Looking at the future, growth trends. Read the analysis executive interview, company plans in the annual report.
3.Price (Basic Value): Values a stock as cheap or expensive. If it is a good quality stock, good growth, cheap price then should buy. But if it is a good quality stock, good growth, expensive, then wait for a moment. For good quality stocks, poor growth, classified as cash cow stocks for investment, focus on cash flow, i.e. buy cheap and sell expensive. For poor quality stocks but growth is good Must go to risk in the future That when it is grown it will be of good quality Can you be the market leader?
For foreign stocks, Khun Best analyzes the situation of different countries and focuses on long-term investment. For example, emerging markets, despite having good quality stocks at very cheap prices. But most investors will invest short-term. Money from various funds Will not buy because the market is small. Which if we can hold long-term stocks Is to compensate for the risk of volatility in those markets.
Investing is not just about money. But it's a matter of the mind
In his opinion, Khun Best the main thing in investing is knowledge. Because if we have enough investment knowledge, we will not be shaken by the market conditions. All stocks should be able to assess their fundamental value. Which we must know what our share is, what bank we hold, for example holding a hundred and we will know that during the market situation at that time, the stocks we hold are cheap or expensive. But if we have the knowledge, our hearts will be silent because we understand what we are doing.
Can the analysis help or not? Khun Best pays attention to the facts presented in the various analyzes. But for opinions on what to do next, It's something to think about for yourself. If unable to analyze and decide Investing in mutual funds is the best solution.
The main diversification of risks in life
Despite success in investing, Khun Best sees that life is much more than an investment. The risk diversification in life is as important as the diversification in the stock portfolio. Investors should spend time doing other things. There is other happiness, too, do not devote your mind to investing alone. Because at the time of the stock market down Life will be broken. That we are enjoying other aspects of life When the stock is down, it will have other aspects of life to help restore and heal our minds. Khun Best noted that what a great investor, there is a skill in mind. Who dares to buy when others do not buy and dare to sell when others do not sell? Which if there is no diversification in life When stocks fall their lives will lose zero. Because no one wins the stock market all the time.
In private, Khun Best himself spread the risk and enjoying life in 5 areas: 1) being an investor 2) running a family business That is a pharmaceutical factory 3) I am happy to tell stories. Through making pages/content in online “Investerest” 4) being a writer for a short story Which is a dream since childhood 5) spending time personally, exercising, meeting friends, relaxing, etc
What does investment change and give to live?
For such questions, Khun Best's answer is that investment has transformed the first sums of money from his mother into financial freedom. By investing in the stock market for 5 years with a return of 30 times. Giving Khun Best financial freedom and on days when the framework is not restricted to having to work for money anymore, gives him the freedom to do his best which is happiness in life.
At the same time, the investment let Khun Best know that money is important but it's not everything in life. One time he missed an opportunity to make a profit of 30 million baht. If he can't get out of that idea, life would have deteriorated. And when he has money at a certain point, Khun Best realized that despite how much money he had His life has not changed. Still in the same house, driving the same car, living the same daily life, in fact, the happiness of life depends on the attitude.
In addition, for Khun Best, an investment is not a financial investment. Rather, it is a mental investment that will strive to do what you love. If you still don't know what you like the only way to know is to try it, so that you know if you like it or not. If you try 10 things and still don't know, you can try 20 more. As an opportunity for us to find our own preferences. Besides that, reading books helps us to gain new experiences Like wearing other people's lives and help us find answers faster
Investing during COVID-19
Khun Best sees two types of equity investments in the COVID-19 situation: the unpredictable business group. Is the tourism sector which stocks are not ready to invest Because there is no certainty about when the vaccine will be invented, when can the country open to receive tourists? Including the behavior of people who have not traveled for a long time whether to return to travel as before or not.
Another group of predictable stocks is domestic consumer-dependent stocks - retail, consumer, transportation, hospitals, restaurants - which can predict the consumer sector rebounding. Even now, spending is not much due to the economic condition, but within 2-3 years it will return for sure, so don't just look at this year's investment. Because it is difficult to predict. But look at what business stocks will survive the next 2-3 years by choosing to invest only in stable business stocks. Because the current economic condition is still worrisome from the reduced consumption. Which can see evident from the second quarter. The tourism business has not yet returned. Export sector slowed down from the global economy. The decrease in oil consumption indicates low demand and poor growth. In the banking sector, there are concerns about the moratorium. Therefore, it is advisable to stay with a stable safety. In the crisis every stock fell, but when going through the crisis Not all stocks go up. So, during the market down choose the best stock, the cheapest, and probably not the one with the biggest drop in price. Rather, it is a stock that we think will survive the crisis. Then we, who hold it can sleep well, that is, survival is the key.
Leave for new investors
What Khun Bess would like to give to new investors that 3 things that you must have if you want to be successful are 1) Time to invest 2) Attitude that likes to be interested in investing and enjoy investing 3) Knowledge, add as much knowledge as possible. This is very important, learn as much as possible. Time to enter the stock market doesn't think only for money but focus on knowledge that will be a weapon for every investor. Capital is not the most important. You can have it and it can be gone. The stock market is like the sky. The important thing is that we must be prepared with an umbrella and a thatched roof. If prepared, it will survive. As an investor, don't be afraid of the rain. Because the return is rain. It is an opportunity that comes with a crisis.
Best summarizes what is important about being an investor is finding the meaning of life and focus on that. Diversify life risks and need to keep learning more.